The barbershop industry is a subsection of the beauty industry that is specifically geared towards men. Although barbershops are inherently cosmetic, the association of cosmetics with femininity leads to an interesting marketing strategy where barbershops are seen as a simple necessity for cleanliness, in contrast to the apparent frivolity of spas and beauty salons. As a result, there is a narrow range of services that barber shops offer, and many are limited to the cutting, trimming, and shaving of men’s hairs and beards. Some high end barber shops offer styling services as well, but most local barbershops stick to the basics. Like the other sub industries within the beauty and health industry, the barbershop market is highly fragmented, with no companies owning more than 5% of the market share. However, major players include Sports Clips Inc. and Rooster Men’s Grooming Center. Currently, the barbershop industry is valued at about $5 billion and there are over 100,000 operating businesses within the industry.
As the COVID-19 pandemic shut down all nonessential businesses, businesses in the beauty and health industry were not left unscathed. As these nonessential businesses were allowed to resume business with the reopening of the economy, stringent health guidelines regarding masks and social distancing limited the amount of customers that these businesses could serve, a blow to already razor thin margins. But before the pandemic, a growing economy and rise in discretionary spending allowed for this industry to expand magnificently, with more consumers opting to choose high-end, quality services for more money than try to save money on these types of luxury services. Furthermore, trends in “self-care” and the rising prominence of the health and wellness industry generated renewed interest in these types of services. As the pandemic subsides, the economy begins to recover, and household income levels continue to rise, the industry is expected to rebound.
The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.
For every 9 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Non-Franchise Businesses taken into account: 11,687
Average Health & Beauty Franchise Industry Percentage Fees
Standard Health & Beauty Franchise Industry Investment
This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 98 franchise concept investment breakdowns in order to calculate this figure.
The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.
For every 16 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Franchise Businesses taken into account: 3,275
Learn more about the Health & Beauty Industry
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